Fitch cuts CLP view to negative

Fitch Ratings said it affirmed CLP Holdings Ltd. and CLP Power Hong Kong Ltd.'s long-term foreign- and local-currency issuer default ratings at A+ and short-term foreign-currency issuer default rating at F1.

The outlook was revised to negative from stable.

The negative outlook reflects the company's large capital expenditure pipeline in both Hong Kong and overseas, Fitch said.

Furthermore, debt-funded projects are expected to moderately increase CLP's leverage, which could result in a notch downgrade, the agency said.

The ratings continue to benefit from the credit strength of its principal wholly-owned subsidiary, CLP Power, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.